Eight key control performance monitoring
You’ve spent a lot of time and have worked with passion to build your business. Now you have a solid revenue model, a written business plan, financial forecasts and you have a superb team. You have reached a stage where you need to strategically sustain your business.
Your Financial Director or CFO (Chief Financial Officer) can be a critical figure in securing your business plan helping your growth, and assisting in overcoming entrepreneurial and operational challenges.
Further, and critically, your CFO is instrumental in putting good management controls in place. These controls are designed to check the adequacy of your business strategies and the performance achieved. They are often presented in a dashboard. However, before setting up a scoreboard and expensive systems, it is important to establish the following 8 key controls:
- Have realistic budgets
- Provide a budget of cash flow and develop a spending control system
- Plan for asset protection strategies IP (Intellectual Property)
- Establish a licensing system and a register of major contracts
- Establish an accounting and administrative management manual
- Establish frequent management meetings and an open communication system
- Follow up on budgets versus actual results and measure performance gaps
- Evaluate the inefficiencies and implement corrective measures
These controls are necessary but insufficient on their own for the sustainability and growth of your company. Your CFO and the entire management team will need to keep abreast of a rapidly changing world, and may from time to time need to seek outside or third party advice and assistance.
6DT Consulting 